July 18, 2016

AWS acquires software development startup Cloud9

Bay area based startup acquired by Amazon’s cloud computing unit for an undisclosed amount.

Amazon Web Services, the tech giant’s cloud computing unit, last week acquired Cloud9, a software development startup. The terms of the deal remained undisclosed. The move was announced by Cloud9 CEO Ruben Daniels on the startup’s blog.

Founded in 2010, Cloud9 is a “Development as a Service” provider that offers software developers a cloud-based coding environment that allows collaboration. The company, which has offices in San Francisco and Amsterdam, claims to have half a million registered users and has previously raised over $5 million in two rounds of funding.

It’s unclear how much Amazon paid for Cloud9, but the company rarely makes big acquisitions (it spent $795 million in acquisitions in 2015, down from $979 million in 2014). In the first quarter of 2016, it spent $16 million in acquisitions.

Industry analysts say that AWS has been steadily adding essential building blocks of software development to its product line with the goal of becoming a complete platform in the cloud. With the Cloud9 acquisition, Amazon is plugging a critical gap in its service offering by now having a robust development environment.

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